Hudson Pacific downgraded to Neutral from Outperform at Wedbush

Wedbush analyst Richard Anderson downgraded Hudson Pacific to Neutral from Outperform with a price target of $7.50, down from $11. The company’s funds from operations guidance substantially missed the consensus, a rare occurrence at this order of magnitude for real estate investment trusts, the analyst tells investors in a research note. The firm says the main factor is the timing of the media recovery as production methodically restarts following the strikes. However, office occupancy is also likely to remain challenged for most of 2024, and Hudson Pacific needs to do new speculative leasing just to maintain flat occupancy growth for the year, adds Wedbush.